En.odmev 017: Energy Sector Can Make Real Magic Happen Outside Comfort Zone
Date: March 10th 2017
Author: Tanja Srnovršnik Volarič
Category: En.vision
Topic:
Energy policy
, New technologies
, Economy
The energy sector is facing big changes, and a way to adapt to these changes is through innovation. However, improvements only happen when we step outside our comfort zone, said Christo Balinow from Europe’s biggest energy accelerator InnoEnergy on Thursday, at Energetika.NET's 10th En.odmev 017 conference entitled New Business Models in Energy.
ʺInnovation in the energy sector sounds like an oxymoron, as the energy sector has long been known as one of the most conservative sectors in the world,ʺ said Balinow, adding that despite this, energy companies in northern and western Europe are already trying to innovate and find new business models.Balinow mentioned that in the past oil and gas were regarded as the most conservative part of the energy sector.
Prior to the big fall in oil prices, upstream oil and gas always brought in the most money, and nobody dared to touch it. The financial crisis in 2009 hit the oil and gas industries in a big way and was a short sharp shock. Fortunately things improved explained Balinow, adding however that during the crisis a couple of companies saw what can happen even in such a short time.
The 2009 crisis actually helped the oil and gas industry to start preparing for a possible new shock, which happened with the fall in oil prices in 2014, said Balinow.
Fitting technology to business purposes
Balinow stressed that while a comfort zone is something companies should aim for, ʺthe real magicʺ - improvements - happen outside this comfort zone.
However, Balinow explained that innovation is not only an improvement in technology i.e. not only technology focused, but also means being able to fit technology to business purposes.
As an example, Balinow mentioned petrol stations. ʺThey still sell oil and gas, but they have evolved and now also have stores that offer fast food, sell services and have EV chargers, even though this is competiton. Oil and gas companies have become much more humble, and are looking for new ways to get income,ʺ said Balinow.
Additionally, energy companies in northern and western Europe have already been trying to innovate and to find new business models. Balinow thinks that those companies who will succeed are those with new business models that will be able to transform something that is already used today into something else. For example, smart plugs – finding a business model so that these plugs can be used in a way that enables utilities to sell different services.
Read Also:
- Tom Nyblin, Montel: Companies That Are Not Evolving and Adapting Cannot Stay Afloat
- En.odmev 017: In Developing New Business Models, Energy Companies Lack Boldness
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